Markets around the world have been digesting Thursday’s big moves overnight but have not unwound the big USD breakdown or breakouts by EUR, gold, CAD and JPY. There is a ton of data still to come today from the US and Canada plus Fed speakers which could drive big swings in the markets right through to the weekend.
North American and European Indices
US 30 continues to struggle with 20,000 round number resistance with RSI falling toward 50 indicating upward momentum slowing. The index has been steady near 19,890 lately within a 19,810 to 19,850 range with next downside support in the 19,700 to 19,750 zone.
US SPX 500 is hanging around 2,270 just below 2,278 resistance and above potential support near 2,260 then 2,230. RSI falling toward 50 indicates momentum shifting from upward to sideways with a downturn possible.
US NDAQ 100 remains well supported holding on to Thursday rally up from 4,930 toward 4,970 but still stuck below 5,000 round number resistance. RSI so far indicates upward momentum still increasing. In a pullback, next support could appear near 4,900.
UK 100 has started to encounter resistance near 7,200 and with the RSI overbought and rolling over, a trading correction appears possible with initial support tests near 7,170 then the 7,105 recent breakout point.
Germany 30 is trending sideways between 11,540 and 11,600 below 11,650 resistance that has emerged near 11,665 and above potential support near the 11,500 round number or 11,445 recent breakout point. RSI remains overbought and is starting to roll over.
Gold is consolidating recent gains with support coming in at a Fibonacci cluster near $1,172 its recent breakout point with initial resistance emerging near $1.180 then $1,185. RSI back above 50 indicates upward momentum increasing. Next support near $1,160 with next resistance near $1,200.
Crude Oil WTI remains under accumulation, with support climbing toward $53.00 from $52.30 and the price advancing on $53.70 resistance with its next upside tests possible near $54.10 then $54.70.
US Dollar Index found some initial support near 101.50 but has been unable to retake 102.00 which it needs to do to call off Thursday’s big breakdown. Next resistance near 102.50 if successful with next downside tests near 101.30 then 100.65 and 100.00.
USDJPY found some support near 115.10 near a round number and a 23% retracement of the previous uptrend. The pair is currently trading between 115.00 and 116.70 recently trading between 115.70 and 116.30. RSI testing 50 where a break would confirm a downturn.
EURUSD is sitting on $1.0585, a 23% retracement of its post-election selloff, consolidating its breakout over $1.0500 with support moving up toward $1.0560. RSI back above 50 indicates upward momentum increasing again with next resistance possible near $1.0615 then $1.0655.
EURGBP has been creeping upward overnight from 0.8520 toward 0.8570 to test its 50-day average with next resistance possible near 0.8660 a Fibonacci level and the top of the current trading range. Downside support appears near 0.8500 then 0.8460.
GBPUSD was unable to overcome resistance at its 50-day average near $1.2425 and has dropped back into the $1.2340 to $1.2370 area with additional support possible near $1.2240. RSI failing to retake 50 suggests longer term downtrend still intact.
USDCAD is consolidating Thursday’s big plunge from $1.3300 toward $1.3200 trading in the $1.3240 to $1.3270 area. RSI back under 50 suggests momentum turning downward.
CADUSD is having an inside day, consolidating Thursday’s big breakout rally over $0.7500 near $0.7550 a Fibonacci level. Initial upside resistance possible near $0.7580.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.